Jan 11 2011
Cornerstone Capital Resources Inc. (TSX VENTURE:CGP) (FRANKFURT:GWN) (BERLIN:GWN) (PINK SHEETS:CTNXF) announced today that it has concluded a Definitive Agreement with its joint venture partner that will allow diamond drilling to commence immediately on the Gama Prospect, located in the NW portion of the Company's flagship Shyri Gold-Copper Project in southern Ecuador.
The Shyri Project is the subject of an Option Agreement with partner Intrepid Mines Ltd. ("Intrepid") (ASX-IAU, TSXV-IAU). As previously announced (see news release dated Oct 29, 2009), Intrepid has the option to acquire an initial 60% interest in Cornerstone's Shyri Project which is located in central Ecuador, approximately 350km south of Quito and 150km north of the border with Peru. Under the terms of the Agreement, Intrepid has the ability to earn an initial 60% interest in the Shyri property by spending $US 6.0 million dollars over 5 years, with a firm commitment of $US 1.0 million in the first year.
"We have consistently told shareholders that both Cornerstone and Intrepid would move quickly to a drilling program once approval was received from the Ecuadorian government," said Glen H. McKay, President & CEO, Cornerstone Capital Resources Inc. "The Agreement formalizes our intention to aggressively explore this highly prospective property. We expect to release results from the program on a consistent and timely basis."
Cornerstone is the operator of the exploration program. Technical teams from Cornerstone and Intrepid have worked closely together to define the current suite of drill targets and to plan the ongoing regional exploration program within the broader Shyri Project area.
Drill Program
Cornerstone and Intrepid have approved a Phase one 2,900 metre diamond drilling program comprising 11 holes over various targets defined on the basis of surface geochemistry, detailed geology, magnetics, and 3-D interpretation of Induced Polarization (IP) geophysical data.
The drill-hole program will target both high sulphidation gold systems, comparable to the nearby 3.4Moz Quimsacocha gold deposit, and porphyry copper-gold systems. The targets have not been previously drilled.
The drill program will test 7 targets over an area of 3 x 2 kilometers.
- Target B is a coincident surface copper-gold-molybdenum geochemical anomaly with a well-defined annular magnetic signature, and IP chargeability and resistivity anomalies. The target model is a porphyry system with areas of high sulphidation overprint;
- Target C is a coincident silver-gold-mercury geochemical anomaly possibly representing a high level epithermal system;
- Target D is a coincident surface copper-gold-molybdenum geochemical anomaly and IP chargeability anomaly that may represent a porphyry system;
- Target E is a coincident surface copper-gold-molybdenum geochemical anomaly, IP chargeability anomaly, and geology that may represent the upper zones of a porphyry system;
- Target F is a coincident surface copper-gold-molybdenum geochemical anomaly with encouraging geology suggesting a porphyry environment. The IP geophysical coverage does not extend over this southern-most target area;
- One initial drill hole is proposed to test the mineralised Ermita Breccia. Rock chips returned up to 5.7g/t gold from the breccia that is interpreted to source a high sulphidation system at depth.
- One drill hole has been planned to test an interpreted flat lying high sulphidation system approximately 500m to the south of the Ermita Breccia.
The approved exploration program includes scope to test other targets that may emerge as a consequence of the results obtained during the planned drilling, including geophysical targets that are located to the north of Target B.
This press release was approved by Colin B. McKenzie, P.Geo., a Cornerstone Director and a Qualified Person in accordance with National Instrument 43-101. Exploration work on the Shyri project is being carried out under the supervision of Yvan Crepeau, Geologist, MBA, CESA's Country Manager, Ecuador.
Source: Cornerstone Capital Resources Inc.